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Slowdown Aftermath on Alternative Asset Class : Highlights

03 December, 2008

Highbridge Capital Management Limits Redemptions From Its Asia Hedge Fund: JPMorgan Chase’s Highbridge Capital Management is limiting redemptions from its Asia hedge fund.

The $1.9 billion Asia Opportunities Fund is down 32% this year. Investors who made redemption requests are to get half of their money back by the end of next month, with the rest to come over the next 12 to 18 months. In the meantime, Highbridge will place the fund’s more illiquid assets into a side pocket in an effort to avoid a forced sale at distressed prices.

As part of the restructuring, Highbridge will cut the fund’s management fee from 2% to 1.5%. Asia Opportunities is managed by Carl Huttenlocher, who is no stranger to hedge fund difficulties: He was head trader at Long-Term Capital Management, which was the largest-ever hedge fund collapse when it went under 10 years ago.

Asia Opportunities is not the only Highbridge fund suffering huge redemption requests. Investors in its flagship multistrategy fund have asked to yank more than 36% of its assets, The Wall Street Journal reports.

Citigroup Fires Employees Including The MD At Its Real Estate Investment Banking Team In Asia : Citigroup Inc. fired most employees at its real estate investment banking team in Asia after slumping property prices muted share sales and acquisitions in the industry, Bloomberg reported quoting people familiar with the matter said.

The bank reportedly dismissed at least five people two weeks ago, including Edmund Ho, a managing director who headed the team, and Director Edward Yeh.

Citigroup, which in November embarked on a plan to shed 52,000 jobs worldwide, will serve property clients through its country and corporate bankers after closing down Ho’s team, the report noted.

Meanwhile, another report stated that Citigroup has no plans to sell its brokerage and investment banking units in Japan. The news came in response to speculation that the company’s Japan unit could be unloaded as part of a global asset sale by the struggling U.S. bank.

It has no plans to sell broker Nikko Cordial Securities, investment bank Nikko Citigroup Ltd or other “core businesses in Japan”, Citigroup’s holding company in Japan reportedly said in a statement.

 


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Slowdown Aftermath on Alternative Asset Class : Highlights

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